On Thursday, soybean futures rose by 13 to 16 cents in most contracts. Soybean meal futures also closed higher, while soybean oil futures were higher throughout the day. According to a Reuters report, the White House has called on biofuel and oil producers to enter into talks on a new biofuel policy. A proposal to increase the blending requirement for diesel and biodiesel from renewable energy sources has already been discussed and an agreement has emerged.
Weekly export sales of soybeans for the 2024/25 season totalled 338,469 tons in the week to 20 March, down 4% on the previous week. Nevertheless, sales were 28.3 % higher than in the same week last year. Mexico was the largest buyer this week with 260,900 tons, while China imported 202,300 tons. Bookings for soybean meal fell to their lowest level in ten weeks at 165,992 tons. In contrast, sales of bean oil rose to 44,493 tons, an increase of 30.2% compared to the previous week.
On the Intercontinental Exchange, canola prices rose on yesterday's trading day, in some cases achieving double-digit gains. May rapeseed on the Paris Euronext rose by €8.00 to reach €521.00/t - a significant price increase before the weekend. Although prices fell at the beginning of the week, they recovered as the week progressed and May futures again broke through the €500 mark. However, contracts for the new harvest showed less strong price increases, as good forecasts for the coming rapeseed harvest in the EU limited gains. In addition, the tariffs between the USA and China remain a factor of uncertainty for the markets.
ZMP Live Expert Opinion
The price trend for soybeans, canola and rapeseed recently showed a positive trend, supported by political impetus such as the discussion on biofuel blending and strong export demand, particularly from Mexico and China. Canola and rapeseed prices also recovered. However, the good rapeseed harvest in both the EU and Brazil could have a dampening effect on prices. In addition, the trade tariffs between the USA and other countries remain a factor of uncertainty.
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